Another Big Airline Just Eliminated Change and Cancellation Fees

For years, having to make a change or cancellation to air travel plans could set you back quite a bit, but during the pandemic, major U.S. airlines like Delta, American, United, and Alaska Airlines did away with change and cancellation fees except for the cheapest, most restrictive ticket tiers. The companies joined Southwest Airlines and its longstanding no-change-fee policy. 

Low-cost airlines like Spirit and Frontier are now catching up to their major carrier competitors. Spirit just announced that it's doing away with both change and cancellation fees, effective immediately, meaning no more paying between $69 and $119 for a ticket change or cancellation. The move comes just days after another budget competitor, Frontier Airlines, shared a similar announcement. 

"This new policy is among the best in the industry because it applies to each and every guest," Spirit said in a statement to CNBC. "We have many other enhancements in the works and look forward to sharing more soon."

It's a notable shift for low-cost airlines specifically, as they've long relied on bringing in customers with low base fares and making a killing with add-on fees for everything from choosing your seat or bringing a carry-on to bottled water on the flight. Spirit, like other budget airlines, also offers bundle packages that reduce the normal price of add-ons like checked bags. The company's chief commercial officer Matt Klein noted that these moves will help them compete in the marketplace. 

"As we continue to see the demand and competitive environments develop, we know that we must also change with the times," Klein said in a recent earnings call, per CNBC. "We will continue to test out new merchandising strategies, which we anticipate will change how we think about the components of total revenue generation."

If you've booked any summer travel but might have to rearrange your plans, you can rest easy knowing you won't be spending any extra dollars to do so.